Board gets update on state finances

Published 5:10 am, Saturday, November 29, 2014

With the state of Illinois nearly three months behind in its payments to the Edwardsville Community District 7 and with those payments currently totaling $1.3 million for the 2014-15 school year, Edwardsville District 7 Superintendent Ed Hightower reminded the board during its general meeting Monday night to be mindful of the state’s financial situation because it continues to affect the district’s financial future.

“The state is approaching three months delay in paying its bills,” Hightower emphasized. “If you recall, on Oct. 22, 2014, at the board meeting, I reported that the state had over 52,000 unpaid bills totaling $3.5 billion. As of November 19, 2014, the state has now reached 97,000 unpaid bills totaling nearly $4.3 billion.”

“Again this is just to keep the board aware and the public aware that as we continue to go through the 2014-15 school year, we can expect that we will see a farther falling behind by the state in meeting its obligations,” Hightower added.

The current $1.3 million due to the district from the Illinois State Board of Education includes Special Education-Private Facility Tuition ($54,455), Special Education -Extraordinary ($226,724), Special Education - Personnel ($304,331), Agriculture Education ($2,178), Bilingual Education ($493), State Free Lunch and Breakfast ($1,957), Transportation - Regular Education ($288,934), Transportation - Special Education ($257,151), Early Childhood Block Grant ($68,660), and Orphanage Tuition - Detention ($44,489).

Hightower emphasized that the state’s financial woes were increasing due to the approaching phasing out of the 2011 state income tax increase. Back in 2011 lawmakers approved the temporary income tax increase that increased individual tax rates from three to five percent and corporate tax rates from 4.8 to 7 percent. This increase was originally approved as a temporary fix to the state’s budget and included a phasing out of the increase which is set to begin in January 2015. At that time, tax rates will decrease to 3.75 for individuals and 5.25 for corporations.

“The issue is the income tax which is $4 billion in the red right now,” Hightower said. “If it’s not reinstated, it will have a major impact on the state’s ability to move forward with funding programs in schools as we get into the second part of the school year - after January of 2015.”

As the state lags behind in paying District 7, the district is forced to use reserves as Hightower noted “to make up that difference and then hope that the state will pay us back.” “The concern - as is Mr. Courtney’s - is that come February or March we will find ourselves like we were three or four years ago where we were up to five months behind in being paid.” Hightower noted. “As we have talked (about this topic) over the last few months, we will continue to bring this before you, and this is an area that the board really needs to be mindful.”

“We’re doing everything we can and you are doing everything that you can. But the issues that we’re seeing right now are certainly at the state level and how this is going to continue to impact the district’s ability to function properly,” Hightower said.

Edwardsville District 7 Board Member Greg Roosevelt pointed out that Governor-elect Rauner announced last week in the Chicago Tribune that he had reviewed more details of the state’s budget. “His assessment of the situation is it’s “stunningly bad” and his analysis of the fiscal situation, as he described it as, “dire,” so I think that’s going to be important as to what place forward it moves as of January,” Roosevelt said. “I appreciate your comments and keeping the board informed.”

Roosevelt also inquired about dissemination to parents regarding the district’s 2014-15 procedure plans for cancellation of school due to bad weather. Hightower explained that an email will be sent to all parents Friday or Saturday with an update on the weather forecast procedures and how it is determined if school is canceled.

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In other board action, November bills were approved in the amount of $1,244,731.70.

The next board of education meeting is scheduled for 7:30 p.m. on Dec. 15 at Woodland Elementary.